Question: Can committee members be removed by a Vote of No Confidence?
A unit owner posted a motion at an EGM to remove three committee members for reasons other than code of conduct. The motion was defeated.
I believe that the motion was out of order because the explanatory notes stated, “are leaving the Committee in a state of uncertainty given their non-transparent conduct. There is no confidence in their governance. It is in the best interest of the Body Corporate that the named Committee members be replaced”
I believe this relates to Code of conduct for committee item 3 and should have been addressed that way.
The motion was defeated anyway and we have an AGM in approximately 3 months, I would like to know if my thinking was correct.
Our complex is under an Accommodation Module.
Answer: While I know that in other governance frameworks the concept of a ‘vote of no confidence’ is reasonably commonplace, there’s no such thing under body corporate legislation.
There are 2 methods for removing a committee member. As you note, one of those methods is for an alleged breach of the code of conduct. Utilising that method is very involved, requiring a prescribed process to be followed.
The other method is removal by an ordinary resolution. No reason is required.
In your scenario, I can see why you’d have queries about the motion put up to remove you. The extract of the Explanatory Note you provide is, to put it mildly, all over the place. While I know that in other governance frameworks the concept of a ‘vote of no confidence’ is reasonably commonplace, there’s no such thing under body corporate legislation. Putting all that to one side, strictly speaking, unless the motion follows the prescribed code of conduct removal process (s37 of the Accommodation Module), then I think it would be considered a motion under the other, simpler method.
There is, of course, a whole other issue here about whether this same submitter will be agitating for your non-election at the AGM, having been thwarted once already in seeking your (and others) removal. I’ll assume you have that one in hand…
This post appears in Strata News #525.
Chris Irons Strata Solve E: chris@stratasolve.com.au P: 0419 805 898